Ripple’s US dollar-pegged stablecoin, RLUSD, is gaining significant traction in the traditional finance sector, as the token has secured a key regulatory milestone in the UAE.
RLUSD Recognized As Accepted Fiat-Referenced Token In Abu Dhabi
RLUSD has fortified its regulatory foothold in one of the world’s most tightly governed crypto hubs.
In a Thursday announcement, Ripple revealed that the stablecoin had joined a small group of tokens cleared for use by institutions in Abu Dhabi after securing recognition as an Accepted Fiat-Referenced Token by the local watchdog.
The Financial Services Regulatory Authority (FSRA) designation means that regulated firms can now use RLUSD within the Abu Dhabi Global Market’s (ADGM) financial zone.
“With a market capitalization of over $1 billion and growing adoption in core financial uses like collateral and payments, RLUSD is quickly becoming a go-to USD stablecoin for major institutions,” Ripple’s senior vice president of stablecoins, Jack McDonald, said.
Ripple’s RLUSD was launched last December on Ethereum and the XRP Ledger under a New York DFS trust charter, and has grown to a market cap of just over $1 billion, according to DefiLlama — making it the 13th largest stablecoin by market cap.
The latest achievement helps Ripple expand its presence in the Middle East.
Earlier this year, Ripple disclosed that it had received full regulatory approval from the Dubai Financial Services Authority (DFSA), allowing it to operate in the Dubai International Financial Center (DIFC), a UAE special economic zone with its own tax policies and regulatory framework. The DFSA later approved RLUSD’s use for various virtual asset services, including payments, treasury management, and other services.
Most recently, Ripple teamed up with Bahrain Fintech Bay, the Kingdom’s main fintech incubator and ecosystem platform, as part of its push to integrate blockchain and stablecoin infrastructure into regulated financial markets.
These developments further fuel speculation among Ripple fans about whether XRP can muster enough momentum to push past its next resistance level of $2.45 and potentially glide past the psychologically important $3 milestone.
Source: https://zycrypto.com/xrp-3-price-eruption-looks-nigh-as-ripples-aggressive-push-into-the-middle-east-proves-game-changing/
